Friday, November 2, 2012

Creative Business Financing

Whether you are already a business owner or are starting up a new business, the first thing that you will think about is Finance. There are many ways of going about getting the money you need.

That said, you must also take into consideration several factors before you get the money. Have a look at the various options you have in front of you and compare it with your business plan and projected revenues. Realistically speaking, identify how you would be able to repay the money that you are taking.

Here are some ideas that will help you get the money you want.

Savings Account: Here we are talking about your own savings account. Before you dip into your kitty of savings, consider the following: How much savings have you got in that account? Are you dependent on that money for your day-to-day expenses? How confident are you that your business venture will succeed? Be realistic while you make these considerations. If the savings account is not something you depend upon and you can afford to forget about the money you take from it should you incur a loss, then go ahead and take the money from it. The upside to this is that you are taking an interest free loan from yourself and saving quite a bit of money on that end. You can even repay this loan in variable installments, and not suffer penalties for it.

Family and Friends: This is also a good option for you to acquire funds for your business venture. Depending upon what you discuss with your friends and family members, you can choose the method of repayment and also if you are liable to pay interest. The downside to this is that if you cannot repay the money back in the time that you promised, you stand to lose a good relative or friend.

Partners: Another good manner of generating funding is to take on partners in your business. This is again a matter of choice. And your partner must have the money and the inclination to invest into your business.